10 Expert Tips For A Profitable Q4 On Amazon!
Amazon has always been a great platform for people looking to sell their products online. The Ecommerce giant has only seen growth over the years. However, the year 2020 has proven to be the biggest ever for Amazon! The global pandemic may have ruined a lot of businesses, but it also gave a strong boost to all companies operating online, because people have mostly worked from home. Amazon has also enjoyed great profits in these extraordinary times.
As the last quarter of 2020 is approaching, you have some very big opportunities to grow like never before. The only pre-requisite is to do things differently to maximize your sales. This last quarter of the year is known as the bumper period for Amazon.
Let’s take a look at the 10 most important tips you need to consider to experience huge growth in profits, in this last quarter of the year.
1. November To January Is The Busiest Period
Fourth-quarter is thought of as the busiest and most profit-generating period of the year. Most businesses take October to January as the fourth quarter and they expect huge sales in this duration. However, experts suggest that it’s the months of November till January when things start to pick pace for Amazon sellers. Therefore, start preparing heavily for the upcoming month of November. October may be a little dry in terms of profits and sales, but don’t fret, use these months to set up your processes for the upcoming busy months.
2. Sales Rank Will Be Different In The Fourth Quarter
Certain goods sell more on different occasions. For instance, if toys were selling in the ratio of 1 unit in 10 days, in the months of summer, the same products will sell every day by the end of November or December as a result of Christmas. Similarly, there might be products like sweaters that rank 300,000 to 400,000 but only sell once or twice in August, will sell daily in Q4. So, don’t let sales rank mislead you in this busy period. There will be a plethora of goods that will see a great hike in volume during the winter season.
3. Do Not Sell Out Everything Before The Start Of January
Often, when people see their sales graph experience steep growth, they put all their efforts to sell out all of their stocks. Do not make this mistake. If you don’t want to contain your sales, then make sure you have enough stock coming in for January to keep the whole month busy. Statistics show that January has proven to be almost as busy as November and December. Most shoppers use their coupons and gift cards in January because they mostly don’t work in December.
4. Merchant Fulfilled Toys Require Approval Only
Toy and games sellers worry about approvals for their products. They fear they won’t be approved by Amazon to sell their toys in the winter holidays. Remember, this approval is only required if you’re dealing in merchant fulfilled toys, whereas if you’re using FBA, you won’t need to get any kind of approval, as it works automatically during the last quarter period.
5. Make Good Use Of Discount Cards
If you’re looking for ways to increase your purchasing power and improving your profit margins, the most effective way is to get hold of discount cards. You’ll find plenty of websites like cardpool.com, where you’ll find gift cards at reduced prices. For instance, if you get a $100 card at the price of $65, you can easily offer $35 in free sourcing of money.
6. Don’t Run After The Most Sought Toys Only
There are certain toys that the majority of customers buy, and therefore, these products make the “holiday hot toy list”. Good advice is to avoid running after these popular items because every other store that sells toys, will be stuffed with these items. Instead, find toys that aren’t easy to find during the winter holidays. This way, you can cater to all the customers and nobody will leave your store empty-handed, thus maximizing your sales.
7. Don’t Continue With The Same Pricing
It’s important to have a re-pricing strategy in the last quarter. A lot of sellers do not consider the option of changing their pricing strategies when they get to the end of December. This is because they experience a good amount of sales at this time. A good rule of thumb is to follow an upward trajectory in your re-pricing after the mid of November. If you witness a certain product’s prices going up in the fourth quarter, you should have a minimum and maximum limit set for the upward pricing. Take a thorough look at how all your competitors are pricing the same category of goods so that you don’t end up going beyond everyone in the line.
8. Improve Your Supply Chain and Lead Time
You’ll experience huge growth in sales in the last quarter. Therefore, you’ll have to mold your supply chain strategies accordingly. Discuss with your suppliers and sort out how you can improve the lead time and you should also set up a safety stock level for all your high-selling products. If affordable for you, get an ERP system or ask a third-party provider to give you ERP services, so that you can automate all the back-office functions. Lastly, keep a check on common supplies like packing material, boxes, tapes, Dymo labels, and other minor necessities.
9. Expect Growth In Returns
It goes without saying when you’re having high sales, you’ll also see product returns. The eCommerce industry usually experiences higher product returns and refunds as compared to physical stores.
Secondly, keep a good check that Amazon reimburses for your lost items.
10. Don’t Get Too Caught Up In Work
Seeing growing sales and higher profit margins is an amazing sight for any business owner. With that said, it’s also important that you don’t spend all your time working. The occasion of Christmas comes once a year and everyone deserves to enjoy this time of the year with family and friends. Find a balance between work and home in this quarter.